Battery Energy Storage System Market Size Worth USD 45 Billion By 2034 | CAGR: 14.00%

The global Battery Energy Storage System market size is expected to reach USD 45 Billion by 2034, according to a new study by Polaris Market Research. The report “Battery Energy Storage System Market Share, Size, Trends, Industry Analysis Report, By Battery Type; By Connection Type (On-grid, Off-grid); By Energy Capacity; By Application; By Region; Segment Forecast, 2025 - 2034” gives a detailed insight into current market dynamics and provides analysis on future market growth.

The significant surge in investment stands out as a key catalyst propelling the expansion of the battery energy storage system (BESS) Market. The rise in population, accelerated urbanization rates, and the initiation of infrastructure projects have led to an amplified demand for power supply from utilities, necessitating substantial investment. To meet this growing demand, both major industry players and governments are channeling investments into BESS to enhance the system's capacity. This influx of investment is a driving force behind the growth trajectory of the battery energy storage systems market.

For instance, In October 2020, the Australian Renewable Energy Agency (ARENA) granted funding of $10.14 Billion for the TransGrid Wallgrove Battery project. This initiative involves the construction, testing, and operation of a 50 MW / 75 MWh lithium-ion battery located at the Wallgrove substation in western Sydney. Employing Tesla batteries, the project aims to showcase an innovative synthetic inertia product called "Virtual Machine Mode." In collaboration with Infigen, TransGrid has established an agreement for the utilization of the 50 MW / 75 MWh battery to provide market services. This funding and collaboration signify a strategic move towards advancing energy storage capabilities and exploring cutting-edge technologies within the renewable energy landscape.

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Furthermore, in September 2023, the Government of India gave the green light to the Scheme for Viability Gap Funding (VGF) aimed at propelling the battery energy storage systems (BESS) sector. Following the Cabinet meeting in New Delhi, the Information and Broadcasting Minister briefed the media, highlighting that the scheme's objective is to foster the development of four thousand Mega Watt hours of BESS projects by the fiscal year 2030-31. The government commits to providing financial support of up to 40 percent of the capital cost as budgetary support.

With an initial outlay totaling approximately 9,400 crore rupees, including a budgetary support component of 3,760 crore rupees, the VGF is structured to be disbursed in five tranches. These tranches will be linked to the various stages of BESS project implementation, reflecting a strategic approach to ensuring sustained progress in this critical sector. Such initiatives are expected to have a significant impact on driving market growth and fostering advancements in battery energy storage technology. 

Battery Energy Storage System Market Report Highlights

• The lithium-ion batteries segment dominated the battery energy storage system market due to its high energy density and suitability for various applications.
• The above 500 MWh segment dominated the market share, catering to high energy demand sectors like mega factories and utilities, promoting grid stability and renewable energy.
• Asia-Pacific's battery energy storage market thrives on renewable integration backed by government initiatives. China leads with ambitious investments and projects like Ming Yang Smart Energy-Tong Liao and Baotang Battery Storage.
• The global key market players include ABB, BYD Company, Contemporary Amperex Technology Co., Limited, General Electric, Hitachi Energy Ltd., Honeywell International, LG Energy Solutions, Ltd., Panasonic Holding Corporation, Saft, SAMSUNG SDI CO., LTD., Siemens AG, Sunverge Energy Inc., Tesla Inc., Toshiba Corporation, Fluence Energy, LLC, Vertiv Group Corp., and AB Volvo.

Polaris Market Research has segmented the Battery Energy Storage System market report based on battery type, connection type, energy capacity, application, and region:

Battery Energy Storage System, Battery Type Outlook (Revenue - USD Billion, 2020 - 2034)

• Lithium-Ion Batteries
• Advanced Lead-Acid Batteries
• Flow Batteries
• Others

Battery Energy Storage System, Connection Type Outlook (Revenue - USD Billion, 2020 - 2034)

• On-Grid
• Off-Grid

Battery Energy Storage System, Energy Capacity Outlook (Revenue - USD Billion, 2020 - 2034)

• Below 100 MWh
• Between 100 to 500 MWh
• Above 500 MWh

Battery Energy Storage System, Application Outlook (Revenue - USD Billion, 2020 - 2034)

• Residential
• Commercial
• Utility

Battery Energy Storage System, Regional Outlook (Revenue - USD Billion, 2020 - 2034)

• North America

• U.S.
• Canada

• Europe

• Germany
• UK
• France
• Italy
• Spain
• Russia
• Netherlands
• Rest of Europe

• Asia Pacific

• China
• India
• Japan
• South Korea
• Indonesia
• Malaysia
• Australia
• Rest of APAC

• Latin America

• Argentina
• Brazil
• Mexico
• Rest of Latin America

• Middle East & Africa

• UAE
• Saudi Arabia
• Israel
• South Africa
• Rest of MEA

Battery Energy Storage System Market Report Scope